3m co. is a us-based mnc with net cash inflows of british pounds and net cash inflows of swiss francs. the 2 currencies are highly positively correlated. antrax co. is a us-based mnc that has the same level of net cash flows in these currencies as 3m co. except that its british pounds represent net cash outflows. which mnc is more exposed to exchange rate risk? a. 3m co. b. antrax co. c. the two firms have similar exposure.

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Answer 1

An MNC with a US base called Diz Co. has net cash inflows of both Swiss francs and British pounds.

The United Kingdom and nine of its dependent territories use the sterling (stg; ISO code: GBP) as their official currency. The primary unit of sterling is the pound (sign: £), which is often used to refer to all British money.

The pound is also known as the British pound or the pound sterling in foreign contexts. The oldest currency that has been continuously used since its creation is sterling, which was first used in 1494. It is now traded on the foreign exchange market in fourth place, behind the US dollar, the euro, and the Japanese yen. It makes up the currency basket used to determine the value of IMF special drawing rights, together with the other three currencies and the renminbi.

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Related Questions

when an organization uses a name, phrase, design, symbols, or a combination of these to identify products and distinguish them from its competitors, it is engaged in blank . multiple choice question. segmentation positioning perceptual mapping branding

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When an organization uses a name, phrase, design, symbols, or a combination of these to identify products and distinguish them from its competitors, it is engaged in Branding.

What is product branding?

Product branding can be defined as then way in which companies tend to make use of unique name, unique design, unique specification among others that will help to differentiate their product from the product of others.

Product branding is essential for every companies that produces or manufactures a product based on the fact that branding a product can makes them to stand out from others who sell the same product as their but do not brand theirs.

Product branding is a form of marketing strategic use by manufacturing companies  as it help to attract potentials  customers to their  product.

Therefore we can conclude that product branding is vital

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boats and bait has 59,000 shares outstanding that sell for a price of $55 per share. the stock has a par value of $2 per share. the company's balance sheet shows capital surplus of $90,000 and retained earnings of $130,000. if the company declares a stock dividend of 20 percent, what is the new common stock value on the balance sheet?

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The new common stock value on the balance sheet will be $141,600

It is given that boats and bait have 59,000 shares outstanding that are sold for a price of $55 per share. First, we will find out the common stock value on the balance sheet prior to the dividend

=> No. of stock outstanding * Face value per share.

=> 59000 * 2

=> $118,000

The stock dividend is 20%. So, to find the new shares to be issued we can solve:

=> 59000 * 20%

=> 59000 * 0.2

=> 11,800 shares

Now we will have to find out the total stock outstanding after the dividend. This can be calculated by:

=> 59000 + 11800

=> 70,800 Shares

The value of common stock after the stock dividend will be

=> 70,800 * 2

=> $141,600

Hence, the common stock value will be $141,600 after the dividend.

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inancial information is presented below: operating expenses $ 42,000 sales returns and allowances 12,000 sales discounts 3,000 sales revenue 165,000 cost of goods sold 96,000 gross profit would be

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Net income - After taking into account all the information provided, the pretax income on the income statement would be $12,000.

Net income (NI), often known as net earnings, is calculated by deducting sales from cost of goods sold, selling, marketing and administration expenditures, operational expenses, amortization, interest, taxes, and other expenditures. Investors can determine how much a company's revenue exceeds its costs by looking at its net income number.


Operating costs are subtracted from gross income to determine net income.
Details $
sixteen thousand five hundred dollars in sales.
Purchase Discount (3,000)
Sales adjustments and returns (12,000)
One hundred fifty thousand dollars in net sales
Charge for Sold Goods (96,000)
54,000 in gross income
operational costs (42,000)
Operating to Net Income Ratio: 12,000

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raynah is frustrated because the feedback she received from her manager didn't explain why she was being demoted. which criterion for effective performance management is missing from barb's feedback?

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Specificity can be described as the criterion that has to do with performance management that is missing from the feedback that Barbs has given.

What is specificity?

This is the term that has to do with the particular reason that would tell us the reason why something is being done. Specificity has to do with the idea that once there is an issue then there has to be a particular reason that would be pinpointed to tell the reason for such.

In this case, the demotion has happened and there is no feedback. The right thing would be to tell her the reason why she is demoted and the ways that she would be able to make amends.

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multichannel distribution systems offer companies the ability to expand the sales and marketing coverage however these systems are typically easier to control than a vertical marketing system. true false

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This statement is True. When a single company establishes two or more marketing channels to target one or more client categories, multichannel distribution systems are created.

What is multichannel distribution ?

When a single company establishes two or more marketing channels to target one or more client categories, multichannel distribution systems are created. For businesses operating in vast, complicated markets, such a system has benefits.

It enables the businesses to increase sales and market penetration. It enables businesses to customise their goods and services to meet the unique requirements of various client segments. Potentially higher bottom-line profitability.

When set up and handled effectively, a multichannel distribution system broadens your consumer base and increases sales. Nevertheless, it can be challenging to set up a multichannel distribution system that reduces costs and maximises profit without the appropriate technology, tools, and resources.

You will ultimately raise sales and strengthen your bottom line by diversifying into new channels. The profit you get from those new consumers can completely outweigh any expenditures you incur from establishing new sales channels.

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during a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory? a.average cost method b.lifo method c.fifo method d.cannot tell without more information

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During a period of falling prices, the inventory method generally results in the lowest balance sheet amount for inventory is FIFO Method.

What is FIFO Method?First in, first out (FIFO) is an uncomplicated approach of inventory valuation based on the presumption that commodities acquired or created first are sold first. This implies that older inventory is distributed to customers before fresh inventory, in theory. In order to calculate LIFO (Last-in, First-Out), multiply the cost of your most recent inventory by the quantity of goods sold, as opposed to FIFO (First-In, First-Out), which multiplies the cost of your oldest inventory by the quantity of inventory sold.First-In, First-Out ("FIFO") bases its production costs on the presumption that the oldest products in an organization's inventory have been sold first. The LIFO ("Last-In, First-Out") system substitutes using expenses from the most recent products sold first in a company's inventory.

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the boeing 767 airplane was the result of a partnership between engineers from a variety of firms in a variety of countries. this type of working together is called a

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Collaboration Team gathers a group of associates who join their forces to break a problem or complete a task. The focus is on a group trouble and how to figure out the result as a collaborative.

What is collaboration team ?

For illustration, during brainstorming sessions, platoon members are in the same room( or same videotape call), agitating an issue and trying to fix an issue is team collaboration. Cooperative platoon is made of experts in colourful fields. They work side by side to negotiate the company’s pretensions.

But, each of them also brings a unique perspective to the table. So, whenever a company has to make a pivotal decision, experts can

1. Express their professional viewpoint on a subject matter,

2. Use their own moxie and experience to help, and

3. Suggest a result to the problem consequently.

4. When the time comes to reach a decision, there will have to be one collaborative mind – one common decision.

There’s an illustration.

The XYZ company wants to produce an sanctioned website. So, the company operation decides to gather their platoon of experts to come up with the stylish result.

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which of the following would the manufacturer find to be the lowest acceptable price for the new supercowchow per sack: a) $60 b) $70 c) $80 d) $90 e) $100

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The lowest acceptable price for the new supercowchow per sack is $60.

Throw light on the concepts of demand and supply.

The two major economic theories are combined in the law of demand and the law of supply to determine how do the changes in the price of a resource, good, or service have an impact on its supply as well as demand. Supply rises as the price increases, but demand for. a good or service drops. In contrast, as the price of a good or service falls, supply is constrained and demand is increased.

Many medieval thinkers saw a distinction between a "fair" price based on costs and equitable returns and one at which the sale was actually conducted, much like modern critics of market pricing for some commodities.

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The complete question is given below :

When administered according to a careful feeding schedule, a premium nutritional additive called Supercowchow increases milk production earnings in a dairy herd to $1,050,000 from the $1,000,000 using the standard Cowchow that costs $50 a sack for the farmer to buy. The farmer uses 1,000 sacks of Cowchow a year. Supercowchow costs $10 per sack extra to manufacture and the farmer would use 1,000 sacks of it. Thus the added-value of Supercowchow over regular Cowchow is $50,000/1,000 sacks, which is $50 per sack.

Which of the following would the manufacturer find to be the lowest acceptable per sack price for the new Supercowchow?

a. $60

b. $70

c. $80

d. $90

e. $100

in companies that provide defined benefit plans, if the funding is inadequate to pay the benefits promised, the employees must make up the shortfall. question 8 options: true false

Answers

It is false that in companies that provide defined benefit plans, if the funding is inadequate to pay the benefits promised, the employees must make up the shortfall

What is benefit plans?

A  benefit plan,  can as well be regarded as the pension plan, which is been used in the provision of the guaranteed retirement benefits  that is been agreed to be paid to the employees over a period of time.

It should be noted that this Defined benefit plans is been put into consideration so as to help the employee from the employer and it been been fully funded by the employers.

In conclusion the this plan do come along with the retirement payouts  most of the time and it is been paid using some of the  agreed methods with the consideration about the  employee's salary as well as the age and tenure which define the relationship that both the employer as well as the company is having.

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zach opens a small tea shop. zach asks a few other small-business owners he knows for advice on dealing with employees and government regulation and improving processes at the shop. what does this scenario exemplify?

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Zach starts a modest tea store. Zach consults with a few other small business owners he knows for suggestions on how to handle staff, comply with laws, and enhance shop procedures. This instance is a good example of networking.

Sharing information or services between individuals, organizations, or groups is referred to as networking. Additionally, it provides a tool for people to expand their professional or commercial contacts. As a result, people can establish relationships or a network that is beneficial to them in their personal or professional lives.

In order to benefit both parties, networking involves connecting and engaging with others. Your network may be able to offer you guidance if your company is experiencing difficulties. Additionally, you will be able to impart your expertise to others, strengthening your bonds with them. Business networking is crucial because it helps professionals find new possibilities and raises their chances of becoming successful entrepreneurs.

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a small county wants to increase its real gdp from $18,000 to $36,000. if they want this to happen in 5 years, what rate of growth do they need to have each year?

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The country needs a growth rate of 10% every year.

What is the Growth Rate?

The annual growth rate is a helpful indicator of investment patterns. In a poll of nearly 200 senior marketing managers, The Marketing Accountability Standards Board found that 69% of respondents thought the average annual growth rate was a meaningful indicator. The preceding year is the starting point for the algorithm used to determine the annual growth rate. The compound annual growth rate (CAGR) is typically regarded as an appropriate statistic for determining average growth rates across longer time frames.

Difference in GDP = $36,000 - $18,000

Difference in GDP = $18,000

then the rate = 18000 /36000 × 100

rate = 50%

this rate is to be acquired in 5 years

hence for every year = 50% / 5 = 10%

Hence, the growth rate every year should be 10%

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The balances in sales returns, allowances, and discounts are subtracted from total revenues when calculating net revenues.

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The receivable balance in the various aging categories (see table below) is multiplied by a reserve rate to determine the allowance for uncollectible accounts.

Which of the following is a discount that lowers the total amount due if the consumer pays within a certain time frame?

Discounts for early payments Offering an early payment discount doesn't affect the price at which the products are sold. Customers may only reduce the overall amount due from you if they pay you within a certain time frame; otherwise, the total amount owing does not change.

What is estimated using the allowance method?

The allowance approach involves crediting allowance for uncollectible accounts and debiting bad debt expenditure to estimate the amount that the company anticipates would be uncollectible. It will debit allowance for doubtful accounts and credit accounts receivable if a certain account becomes uncollectible.

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Alpha Software Inc. made an advance rent payment of $6,000 for its warehouse. The accounting period for which the company paid the rent was
from January to June 2014. The accountant recorded a rent payment of $1,000 in the month of January, 2014. Which accounting principle guides
this action?

Answers

The accrual basis approach, which recognizes costs when they are incurred regardless of when they were paid, is the accounting concept guiding this activity.

What is the principle of dual aspect ?

According to the "dual aspect" idea, every business transaction has an equal and opposing influence on two separate parts of the company. In order to produce accurate and trustworthy financial accounts, all accounting systems rely on this idea, which serves as the cornerstone of double-entry accounting.

According to the dual aspect notion, in order to accurately depict the movement of funds, the accounting records must reflect the fact that every transaction has two outcomes. For instance, a buyer may pay cash for an item they acquire, and a seller may receive cash for an item they sell.

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80% of people starting a business use their own personal savings. What is the advantage to this strategy versus using bank loans and credit cards? A. You control how the money is spent B. You will not pay interest on the capital. C. You do not have any risk of losing your money.​

Answers

An advantage of using personal savings instead of bank loans and credit cards is you will not pay interest on the capital. (option B)

What is personal savings?

Personal savings is the wealth that a person has accumulated over a period of time. When a person uses his personal savings to start a business, the person would not have to pay interest on the money used in the business because the funds used belongs to the person.

Banks loans and credit cards are subject to interest payment over the duration of the loan. Interest would increase the cost of starting the business.  Funds that are gotten either from bank loans or personal savings can be lost if the business is not successful. Also, three is an opportunity cost associated in using the funds for starting a business. Opportunity cost is the cost of the next best option forgone when one option is chosen over other options.

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Sarah has shared with noel that they are part of their​ manager’s ingroup. What argument can she use to convince noel of the correctness of her​ perception?.

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They have higher performance ratings than others in their department. This argument she can use to convince noel of the correctness of her​ perception

The time period 'department' can refer to a number of various things. as an example, an administrative division inside a nation, a governmental ministry or even a part of an group. on this specific definition, we confer with the time period 'branch' because it's used to refer to separate divisions of an enterprise.

A branch is normally understood as a part of a bigger organization. The time period 'branch' can also cowl a extensive style of meanings, from e.g. a geographical or administrative division within a rustic, to a governmental ministry or a part of an organization, together with a university.

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dan picked up his friend rodney to drive to their softball game. both dan and rodney have a personal auto policy (pap) with $5,000 of medical payments coverage. dan hit a parked car, and rodney was injured, incurring $9,000 of medical expenses. how will this claim be settled under the other insurance provision of the pap?

Answers

Dan's insurance would pay nothing because the expense is not covered by a third-party accident claim. Dan's insurer would pay $0 and Rodney's insurer would pay the whole $3500.

What is insurance?
Insurance
is a form of financial protection in which, in exchange for a fee, one party undertakes to compensate another party in the case of a specific loss, damage, or injury. It is a type of risk management that is primarily used to mitigate the risk of a dependent or uncertain loss. An insurer, insurance business, insurance provider, or underwriter is a company that offers insurance. A policyholder is a person or entity who purchases insurance, whereas an insured is a person or entity who is covered by the policy. Policyholder and insured are frequently used interchangeably, although they are not synonymous, because coverage might occasionally extend to extra insureds who did not purchase the insurance.

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suppose jollyland has a population of 1,000 people and a gdp of $1 million, while follyland has a population of 8,000 people and a gdp of $8 million. which country has a higher gdp per capita?

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Assume that Jollyland has 1,000 residents and a $1 million GDP, while Follyland has 8,000 residents and an $8 million GDP. The GDP per person is the same in both nations.

How much is the GDP?

GDP is made up of products and services generated for market consumption as well as certain nonmarket production, including government-provided defense or educational services. Gross national product, or GNP, is a different concept that accounts for all national output.

We are aware that the total monetary worth of all final goods and services produced in an economy is known as the GDP. Let's imagine, for illustration, that Country B solely produces backrubs and bananas. Figure%: Services and Goods Made in Country B They produce five bananas in year one, each for one dollar, and five backrubs, each worth six dollars.

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in addition to the trade-off between current consumption and investment in capital and research, what other trade-offs do governments face in terms of economic growth?

Answers

Natural environment trade -off the government faces in the terms of economic growth, in addition to the trade- off between current consumption and investment in capital and research.

What is the meaning of Trade-Off?

Economics is full of tradeoffs; Trade- off refers to forgoing a benefit or opportunity while making a choice. In economics trade off refers to opportunity cost which is the most preferred alternative. A trade off refers to the sacrifice made for getting a particular product or experience concept of trade- off is used to describe the everyday situations.

Many factors affect the trade- off environment of a particular country like availability of raw materials, skilled labor, machinery, technology, capital, market rate. Trade- off are positive in competition and essential for strategy . Trade- off are used in many business and real-life situations. Business is a game of trade- offs, Opportunity cost and trade off plays an important role in the business decisions.

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How are payroll taxes different from personal income taxes? question 4 options: tax consumption rather than wealth increase the purchasing power of consumers rather than decreasing it reduce the demand for harmful goods rather than increasing this demand pay for specific social programs rather than general government activities

Answers

D. pay for specific social programs rather than general government activities shows the difference between payroll taxes and personal income tax.

What distinguishes payroll taxes from personal income taxes?

Who pays which and what the taxes fund are the primary distinctions between income and payroll taxes. Employers and employees both contribute to the funding of Social Security, Medicare, and other social insurance programmes through payroll taxes. Employees pay local income taxes to support public services including defence, education, and transportation.

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You need to give every dollar a name. Why is this important? what might happen if you don‘t have a plan for every dollar you make?.

Answers

It is important to give every dollar a name because of zero-based budget. The greatest way to budget is with a zero-based budget since no money is wasted and every dollar has a purpose.  if you don‘t have a plan for every dollar you make your money may be wasted and lead to increase in expense and resource misallocation. The zero-based budget intentionally assigns a name to each dollar before the month even starts.

Explain zero-based budget.

With zero-based budgeting (ZBB), instead of starting with the prior budget and making adjustments as needed, all expenses must be justified for a new period or year starting from zero. Zero-based budgeting has many benefits as an accounting technique, including targeted operations, decreased expenses, budget flexibility, and strategic execution. Managers become more aware of the top revenue-generating operations when they consider how each dollar is spent. Zero-based budgeting, on the other hand, may minimize resource misallocation that could occur over time when a budget develops incrementally, which could lead to reduced expenses.

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3 points print item 3 white company's assets total $780,000 and its owners' equity consists of capital stock of $500,000 and retained earnings of $150,000. determine the company's total amount of outstanding liabilities.

Answers

The company's total amount of outstanding liabilities is $130,000.

What are outstanding liabilities?

Outstanding liabilities are described as the amount of money that an individual or a business owes to investors, creditors, lenders, or any external individual. It is important to mention that liabilities in a business can be represented by the amount to be paid to creditors, loan repayment, payment of salaries and wages to employees, and debts.

Given that,

The assets of a company = $780,000

The owner's equity = capital stock + retained earnings = $500,000 + $150,000 = $650,000

The total amount of outstanding liabilities = 780,000 - 650,000 = $130,000

Hence, the $130,000 is the entire amount of liability.

It can be concluded that the company's total amount of outstanding liabilities is $130,000.

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when perfect price discrimination is used, a barriers to entry are lost. b consumer surplus is maximized. c the firm breaks even. d prices are maximized. e there is no deadweight loss.

Answers

The company aims to maximize producer surplus.There is no surplus for consumers.There is no loss of deadweight.For each unit purchased, everyone pays the highest price they are willing to pay.

How do you select the ideal price differential?

Since the monopoly's pricing policy allows it to capture all of the consumer surplus, perfect price discrimination has CS equal to zero.PS is the area above and below the demand curve, or PS = (1/2)($1000 per unit - $100 per unit)450 units = $202,500.

Because the marginal revenue curve and the market demand curve coincide in perfect price discrimination, the monopolist will also produce until marginal cost equals the price of the product.

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While the use of data and information are important in most businesses, there are also a variety of considerations regarding the protection of customers’ privacy, security, and confidentiality as this information is stored for future use. Explain and identify how and why businesses can and should approach the use of data with privacy, security, and confidentiality in mind.

Answers

The reason why businesses can and should approach the use of data with privacy, security, and confidentiality in mind is because they need to protect the data of clients from the cyber thieves.

What is the importance of protecting data  privacy?

The  importance of protecting data  privacy is that the client can sue the firm in case the their data is been stolen from the firm.

It should be noted that the privacy, security, and confidentiality with respect to the data management is very essential for the image of the company so that the client can trust the company with their important data now and in the future.

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They must safeguard customer data from online thieves, organizations can and should approach the usage of data with privacy, security, and confidentiality in mind.

What is data and information?

Data and information are not the same things, despite the fact that they are commonly used interchangeably. There are small differences between these components and how they work. Data refers to individual facts, whereas information refers to how those facts are organized and interpreted.

Data is a solitary unit made up of simple parts with no clear purpose. Information is a group of facts that, when considered collectively, have a logical significance. Data can exist without information. Data are reliant on knowledge.

Thus, They must safeguard customer data from online thieves.

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john is the annuitant in a variable plan, and sue is the beneficiary. upon john's death during the accumulation period, sue takes a lump-sum payment. what is her total tax liability?

Answers

Considering the tax policy and the situation of John and Sue, the total tax liability for Sue is the "proceeds minus John's cost basis taxed as ordinary income at Sue's tax rate."

What is Tax liability?

Tax Liability is a term that is used to describe the aggregate amount of tax debt owed by individuals, corporations, or other taxable entities.

Example of Tax Liability includes the following:

Income taxes, Sales tax, Capital gains tax, etc.

In this case, given that Sue who is a beneficiary will be taxed at normal income rates during the year the lump sum is received.

Therefore, it is concluded that the amount that Sue will be taxed is the amount of the lump-sum payment minus the deceased's cost basis in the investment.

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an asset is exchanged for another asset and cash is received in the transaction. the fair value of the assets are not determinable. at what amount should the new asset be recorded? multiple choice question. historical cost of the asset given up less the cash received. book value of the asset received less the cash received. book value of the asset given up less the cash received. cash received plus the book value of the asset given up.

Answers

The new asset should be recorded in the amount of book value of the asset given.

Any resource that a company or other economic organisation owns or controls is considered an asset in financial accounting. Anything that has the potential to provide positive economic value qualifies. The ownership value that can be turned into cash is represented by assets. The monetary value of an organization's assets is shown on its balance sheet. It protects cash and other assets that belong to a person or a company. Tangible and intangible assets are the two main categories into which assets can be divided. Different subclasses of tangible assets exist, including fixed and current assets. Cash, inventories, and accounts receivable are examples of current assets, whereas land, structures, and machinery are examples of fixed assets.

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asset turnover kroger co., a national supermarket chain, reported the following data in its financial statements for a recent year: total revenue $10,512,000 total assets at end of year 3,350,000 total assets at beginning of year 3,220,000 a. compute the asset turnover. round to one decimal place.

Answers

The asset turnover ratio, commonly referred to as the total asset turnover ratio, gauges how effectively a business utilises its assets to generate revenue.

Total assets on average equal (1550000+1490000/2)

What is mean by asset turnover?

Net Sales / Average Total Assets equals the asset turnover ratio.

It is the gross sales for a certain time period less any customer-taken discounts, allowances, or refunds. Make sure the net sales figures are taken from the same period when comparing the asset turnover ratios of several organizations.

Features of asset turnover:

A company's sales or revenues are compared to the value of its assets using the asset turnover ratio. The asset turnover ratio can be used to gauge how effectively a business uses its assets to produce income.

A company's sales or revenues are compared to the value of its assets using the asset turnover ratio.

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With low wages and strict controls on speed and productivity, how do barbadian pink-collar workers in the informatics industry express their agency?.

Answers

Despite low wages and strict speed and production rules, Barb-adian "pink-collar" workers in the informatics sector demonstrate their agency through choices in attire and haircuts.

What do workers stand for?

Employees represent brands when they interact with clients and customers, whether in person or, as is more likely at the moment. People will represent the brand and convey its message more effectively if they see their roles as extensions of the business.

What does it entail to speak for a business?

A company's representative is an organization's organ or a person with the authority to act in the company's name before courts and other authorities, as well as to acquire rights and enter into agreements that are legally binding on the company.

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suppose your monthly net income is $2,400. your monthly debt payments include your student loan payment and a gas credit card. they total $360. what is your debt payments-to-income ratio?

Answers

Debt payments-to-income ratio is 3 : 20.

What is a debt?Debt is  money you owe and credit is money you can borrow. You create debt by borrowing money on credit. Borrowed: Obligation unable to pay  his debt. The most important types of personal debt are secured debt, unsecured debt, revolving debt and mortgages. Secured debt requires some form of guarantee, while unsecured debt is based solely  on personal creditworthiness. A debt is a financial obligation or obligation owed by one person, the debtor, to another creditor.A loan (creditor or lender) to repay that money.

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What tips do the directors of college counseling provide to help you successfully find scholarships?.

Answers

Scholarship Application Suggestions

All application deadlines must be met. Make a schedule and stick to it using a calendar or planner.

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in the short run, a monopolist's economic profits multiple choice are always zero because consumers prefer to buy from competitive sellers. may be positive or negative depending on market demand and cost conditions. are always positive because the monopolist is a price-maker. are usually negative because of government price regulation.

Answers

Depending on the state of the market and the cost structure, a monopolist's economic earnings could be positive or negative in the short term.

Accounting earnings are significantly different from economic earnings, which are what stockholders actually make. In the beginning, GAAP accounting data was created for loan investors rather than equity investors. More than 30 modifications must be made to accounting results before economic earnings can be derived. These adjustments eliminate items that are disguised in the MD&A and footnotes of annual filings and plug gaps in GAAP accounting.

Economic earnings outperform accounting profits because, They are based on all of the financial data that is available. For all businesses, they are standardized. They give a truer picture of the underlying cash flows of the business. A corporation is not creating shareholder value if its economic earnings are negative.

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